Global Award Recognition - Amway

Transcription

Global AwardRecognitionRecognizing profitableand sustainable leaders

Your successis at the heartof everythingwe doThe most successful businesses maintain a fixed core whilestrategies and practices endlessly adapt to a changingworld. Our Founders Fundamentals and values serve as thatfoundation around which we build our growth strategies toand vision. It rewards the ability to see a chance for changeand act on it. We have that chance today. We see a future ofgrowth and opportunity; one that honors our core values whilee FREEDOMhievementREWARDEnsReHOPE AcFreeRewardingprofitable andsustainableleadersPersonal Worth recognition. Global Award Recognition provides ourpath to that goal by rewarding profitable and sustainablebusinesses while developing future leaders and puttingpeople first. ilityprimed for long-term achievement – not just short-termI ntFAMILYs ibponrecognizing Direct Sellers who build businessesrityt err isPartnership Redesigning how we celebrate success meansegpopening exciting new doors for leaders like you.QUALIFICATIONREDESIGNEDcontinue our evolution. Today’s business world rewards agilityA new approach to qualification:GLOBAL AWARDGLOBAL RECOGNITION Personal

Global AwardRecognitionGlobal Award RecognitionSIMPLIFIED SINGLE ROUTEthat ensures a continuous journey tosustained achievementSUSTAINED ACHIEVEMENTwith correspondingly higherFOCUS ON FOUNDERS TEAMSaway from previous 6-month criteria EQUITY BETWEEN INCOMEAND AWARDto properly recognize balancedbusinessesGLOBAL RECOGNITIONfor consistent treatmentGLOBAL AWARDGLOBAL RECOGNITIONand sustainable leaders

Key Things to Know AboutGlobal Award RecognitionELIGIBILITYQUALIFICATION CREDITSDirect Sellers must qualify for Founders Diamond by beingEmerald Higher Achievement Commission (EHAC) with 6 ormore Q12 teams, including international teams, in at leastone of their #1 or #2 businessesDepth is measured in QC which are earned based ondownline development according to the table below#1 and/or #2 Multiple Businesses must be a FoundersPlatinum for a team to contribute up to one QC. In orderfor a Founders Platinum team to contribute more thanone QC the multiple business must be EHAC in the localmarket.Global Award based on combined performanceof #1 and #2 Multiple BusinessesExecutive Diamond is the entry point for Global AwardRecognition {6 Founders Platinum (FP) teams and 10Qualification Credits (QC) }QC from Founders Platinums limited to 3 per teamFOUNDERS PLATINUM TEAMSWidth is measured in Founders Platinum (FP) teams, whichdoes not include international teams, a qualified internationalbusiness, or teams without a Founders PlatinumTRANSITIONFounders Platinum teams must be downline of a #1and/or #2 Multiple BusinessEHAC Emerald Higher Achievement CommissionDHAC Diamond Higher Achievement CommissionFDHAC Founders Diamond Higher Achievement CommissionFOUNDERSCOUNCILLEADER OFLEADERSGLOBALLEADERFP TeamsISD Internationally Sponsored DesigneeQC Qualification CreditsFP Founders PlatinumQUALIFICATION CREDITSGLOBAL AWARD RECOGNITION QUALIFICATION TABLEAward LevelA three-year transition period will allow you to adaptyour business with Amway’s full support to create futuresuccess in the new programQualification CreditsFounders Crown Ambassador14 100Crown Ambassador14 88Founders Crown12 76Crown12 64Founders Triple Diamond10 52Triple Diamond10 43Founders Double Diamond8 34Double Diamond8 25Founders Executive Diamond6 16Executive Diamond6 10Downline QualifierQCFounders Platinum (FP) -1.0Emerald Higher AchievementCommission (EHAC)1.5up to 3 QC per teamUp to12 QCper teamDiamond Higher AchievementCommission (DHAC)Founders Diamond HigherAchievement Commission (FDHAC)3.06.0Note: EHAC, DHAC, FDHAC must also beFounders Platinum to countUp to9 QCper teamGlobal Award TiersAs leaders move through their GlobalAward Recognition journey, theyUp to6 QCper teamprogress through leadership tiers whichallow additional QC to be eligible perteam.

A CLOSER LOOK:Global Award Recognition in ActionSAMPLE BUSINESSESEXECUTIVE DIAMONDYou can qualify for Executive Diamond by buildingFounders Platinum teams or by developingleadersLeft: Building 8 Founders Platinum teamswith WIDTH10 Total Qualification CreditsRight: Building 6 Founders Platinum teamswith DEPTH11 Total Qualification C13FP1FP11FPFP11PPPDOUBLE DIAMONDQualify for higher awards by building balancedbusinesses with leaders in both width and depth8 Founders Platinum teams25.5 Total Qualification CreditsFP(15 credits from Founders Platinums;1.5 credits from EHACs; 3 credits fromDHACs; 6 credits from Founders 11FP1FP1FP1PPFP1FP1FPFPFPPTransition TimingFounders Diamond and aboveA three-year transitionTRANSITION PERIODPOST-TRANSITIONperiod will allow you toadapt your business withAmway’s full support tocreate future success inthe new program.Note: Diamond and below willnot be impacted by GlobalAward RecognitionP Y 19Direct Sellers atany award levelcan grow or maintaintheir qualificationusing the better ofthe three programsPY2 0PY2 1PY22Diamond Direct Sellers and below will transitionto the new qualification programFounders Diamond Direct Sellers can maintain theirqualification using the better of the two programs. Growthcan only occur through new qualification standards.All Direct Sellerqualification willbe determined bythe new programstandardsExecutive Diamond Direct Sellers and above canmaintain their qualification using the better of the threeprograms. Growth can only occur through newqualification standards.*For details, please contact your Account Manager.

THE NEW CORE PLAN TTCATwo-Time Cash AwardsBACKGROUND& CONTEXTAs we move towards Global Award Recognition, we are shifting from a one-time cash award(OTCA) program to a two-time cash award (TTCA) program with increased payment amountsand new incentives for requalification.Why change?The introduction of Global Award Recognition will award Direct Sellers based on their global performance across multiple businesses. The TTCAprogram was designed to enhance how new qualification and subsequent requalification are rewarded, increasing the incentive to adapt businessstrategies that lead to the development of sustainable businesses.What does TTCA offer?INCREASED QUALIFYING PAYMENT AMOUNTS Direct Sellers can earn global cash commissions for new qualified award levels above the highest historical award of their top performing multiplebusinesses Under TTCA, Direct Sellers can earn multiple cash commissions for multiple new awards in one year Because businesses are limited to one cash award per qualified level globally, payments will be increased compared to current OTCA amountsREQUALIFICATION DESIGNED TO SUPPORT SUSTAINABLE BUSINESSES The new requalification incentives for TTCA have been designed to reinforce our strategic focus on building sustainable businesses Requalification incentives will be open to first-time Global Award Recognition qualifiers beginning in Performance Year 2020 (PY20).Rationale: Because PY19 is the first year one can qualify under Global Award Recognition, these incentives can only be offered beginning in PY20 Direct Sellers who achieve multiple new awards in one year using Global Award Recognition criteria are eligible for all two-time cash award payments thatresult from first-time higher pin qualification and all subsequent requalification incentives in the year immediately following the achievementTransitioning to TTCA: What to expectTRANSITION IN PY19 In PY19, cash commissions will be paid for all new awards achieved, regardless of how they were how they were achieved (Core Plan/FAA/GAR) : Old Core Plan OTCA payments will apply to new awards achieved via old qualification methods (e.g., Teams or Old FAA points) New Core Plan TTCA payments will apply to new awards achieved via Global Award Recognition qualification methods and will be eligiblefor requalification incentives in PY20 AND A NEW APPROACH IN PY20: In PY20 and beyond, all new awards must be achieved via Global Award Recognition qualification methods – so New Core Plan TTCA policies will applyNote: In PY20 and PY21 only, Direct Sellers who qualified under Global Award Recognition at Crown or above will be able to receive Old Core Plan OTCApayments in #2 markets at levels below their global award, provided they meet criteria for new higher award levels in those markets in that year.The Old Core Plan OTCA payment will be calculated based on the old method and no requalification payment will exist.

How TTCA WorksTWO-TIME CASH AWARDS QUALIFICATION TABLEINCREASED MULTIPLIER AND REQUALIFICATION INCENTIVEIncreased performance incentive multiplier means higher payments than Old Core Plan OTCAsAdditional award is equal to 1/3 of the Year 1 cash payment available when requalifying in the year following first-time qualificationAward LevelYear 1Cash Award*Year 2RequalificationCash Award*Total PotentialPayment*Executive Diamond 14,00,000 4,70,000 18,70,000Founders Executive Diamond 16,00,000 5,30,000 21,30,000Double Diamond 20,00,000 6,70,000 26,70,000Founders Double Diamond 28,00,000 9,30,000 37,30,000Triple Diamond 36,00,000 12,00,000 48,00,000Founders Triple Diamond 48,00,000 16,00,000 64,00,000Crown 64,00,000 21,30,000 85,30,000Founders Crown 80,00,000 26,70,000 1,06,70,000Crown Ambassador 96,00,000 32,00,000 1,28,00,000Founders Crown Ambassador 1,12,00,000 37,00,000 1,49,00,000*Based on India effort index which is one Point equal Rs.80 Net Sales Volume (excluding taxes and discounts). The ratio of Points to Net Sale Volume (excluding taxes and discounts) is adjusted periodically by Amway.PRORATED PAYMENTTTCAs will be prorated according to qualification credits needed for the award; credits from highest paying markets will count firstPublished % of Total ProratedPercentage ofExample MarketIn-Market QC TotalAmountQC Needed Payment(Double Diamond)Needed QCChina2496% (24 of 25) 30,53,097x 96% 29,30,973India54% (1 of 25) 20,00,000x 4% 80,000Total29 (need 25) 30,10,973EXAMPLESRequalifying for each new qualified level in the year following initial achievement will earn additional requalification incentive paymentsEXAMPLE 1: Achieved Founders Triple Diamondand requalified at Founders Triple DiamondExample Award LevelYear OneCash AwardEXAMPLE 2: Achieved Founders Triple Diamondand requalified at Founders Double DiamondYear TwoRequalIncentiveExample Award LevelFounders Double DiamondFounders Double DiamondTriple DiamondTriple DiamondFounders Triple DiamondFounders Triple DiamondYear OneCash AwardYear TwoRequalIncentive*For details, please contact your Account Manager.

Frequently Asked QuestionsBACKGROUND & CONTEXTWhy are we changing qualification criteria?Throughout Amway history, beginning with Rich and Jay, the Sales Plan has evolved along with themarketplace, to provide a relevant and profitable entrepreneurial opportunity. Global Award Recognition isthe next step in that evolution. With the launch of New FAA in Performance Year 2018, it was announcedthat there would be a single path to qualification in the future. Global Award Recognition, aligned with AmwayNext, challenges all of us to ensure business are built upon a solid foundation of healthy, profitable, andsustainable leaders backed by strong sales to loyal buyers and consumers. Leaders will be recognized forbuilding businesses with healthy and profitable structures and for developing and mentoring sustainableleaders. It is a simplified, single route to qualification that promotes a continuous journey to sustainedachievement.Why does Global Award Recognition start at Executive Diamond?Executive Diamond represents the stage of Amway business development where leaders shift emphasisfrom building Platinum teams to duplicating/developing higher level leadership in depth. Previously, the twopaths to qualification had created disparity of effort and income within award levels at Executive Diamondand above. The single path to qualification at Executive Diamond and above will encourage qualifiers havingprofitable, sustainable businesses well positioned for future growth and higher achievement.Are there any changes I can make to my business to maximize Global AwardRecognition?The fundamentals of the Sales Plan have not changed and by focusing on these, you are positioned forsuccess. Founders Platinum teams are key to success as they create both a profitable and sustainablefoundation for your business. Strong, healthy in-market teams are valuable and recommended beforeventuring into international markets. More than ever, helping others become successful will help you becomesuccessful*. (*Success is dependent on the efforts resulting in individual and Direct Sellers sales andPreferred Customer purchases and training & mentoring and applicable compliances).EHAC Emerald Higher Achievement CommissionDHAC Diamond Higher Achievement CommissionFDHAC Founders Diamond Higher Achievement CommissionQC Qualification CreditsFP Founders PlatinumISD Internationally Sponsored DesigneePerformance Year (PY) September to August

Frequently Asked QuestionsWill there be any impact on annual commissions (i.e. Diamond, Diamond Plus)?No. Annual commissions or any other core plan commission calculations are not impacted and will continueto be calculated according to the Sales Plan.Is Global Award Recognition connected to the New FAA program?Global Award Recognition and New FAA are similar, but the two are not identical in their design. Bothprograms focus on leadership development (either through reward or recognition) and Founders Platinumteams, but depth plays a different role for qualification than for the New FAA Commission. While FAA is onecommission in a portfolio of commissions that reward various business building behaviors, there is only oneroute to qualification in Global Award Recognition, requiring a balance of

business, or teams without a Founders Platinum Founders Platinum teams must be downline of a #1 and/or #2 Multiple Business A three-year transition period will allow you to adapt your business with Amway’s full support to create future success in the new program Global Award based on combined performance of #1 and #2 Multiple Businesses